Millennial Lithium Corp (CVE:ML) (OTCQB:MLNLF) said it had now filed its earlier reported positive feasibility study (FS) for the Pastos Grandes project in Argentina.
The document, dated July 29 this year, was prepared by WorleyParsons Chile, Montgomery & Associates, and Peter Ehren, MSc, AusIMM (CP), the firm said in a brief statement on Friday.
READ: Millennial Lithium eyeing development at Pastos Grandes after positive bankable feasibility study
The report showed the project in Salta has the potential to be a 'robust' lithium carbonate producer with low costs.
The study envisaged production of 24,000 tonnes per year (TPY) of battery grade lithium carbonate - over 99.5% lithium carbonate equivalent (LCE) - and puts the total initial capital expenditure required at US$448.2 million, including direct and indirect costs.
The feasibility study is based on an operation using proven solar evaporation technology and conventional lithium brine processing and it puts the projected mine life at 40 years.
The net present value (NPV) was put at US$1,030 million after-tax at an 8% discount rate and an internal rate of return (IRR) of 24.2%.
Two stages
The production model is divided into two stages: 1) Start-Up Stage from Years 1-6 (first 6 years of production) and 2) Main Mining Stage from Years 7-40 (remaining 34 years of production).
In April this year, the company reported a near doubling of the previous tonnage in the measured and indicated category of the Pastos Grandes resource at 4.12 million tonnes LCE and inferred resources of 798,000 tonnes.
Shares added 4.05% to C$1.54 each in Toronto.
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